Company Quick10K Filing
Quick10K
Heron Therapeutics
Closing Price ($) Shares Out (MM) Market Cap ($MM)
$18.28 79 $1,450
10-Q 2019-06-30 Quarter: 2019-06-30
10-Q 2019-03-31 Quarter: 2019-03-31
10-K 2018-12-31 Annual: 2018-12-31
10-Q 2018-09-30 Quarter: 2018-09-30
10-Q 2018-06-30 Quarter: 2018-06-30
10-Q 2018-03-31 Quarter: 2018-03-31
10-K 2017-12-31 Annual: 2017-12-31
10-Q 2017-09-30 Quarter: 2017-09-30
10-Q 2017-06-30 Quarter: 2017-06-30
10-Q 2017-03-31 Quarter: 2017-03-31
10-K 2016-12-31 Annual: 2016-12-31
10-Q 2016-09-30 Quarter: 2016-09-30
10-Q 2016-06-30 Quarter: 2016-06-30
10-Q 2016-03-31 Quarter: 2016-03-31
10-K 2015-12-31 Annual: 2015-12-31
10-Q 2015-09-30 Quarter: 2015-09-30
10-Q 2015-06-30 Quarter: 2015-06-30
10-Q 2015-03-31 Quarter: 2015-03-31
10-K 2014-12-31 Annual: 2014-12-31
10-Q 2014-09-30 Quarter: 2014-09-30
10-Q 2014-06-30 Quarter: 2014-06-30
10-Q 2014-03-31 Quarter: 2014-03-31
10-K 2013-12-31 Annual: 2013-12-31
8-K 2019-08-05 Earnings, Exhibits
8-K 2019-07-15 Other Events
8-K 2019-06-18 Shareholder Vote
8-K 2019-05-21 Regulation FD, Exhibits
8-K 2019-05-14 Regulation FD, Exhibits
8-K 2019-05-09 Earnings, Exhibits
8-K 2019-05-01 Other Events, Exhibits
8-K 2019-03-11 Other Events, Exhibits
8-K 2019-02-22 Earnings, Exhibits
8-K 2019-02-07 Amend Bylaw, Exhibits
8-K 2019-02-02 Officers
8-K 2019-01-07 Earnings, Regulation FD, Exhibits
8-K 2019-01-03 Other Events, Exhibits
8-K 2018-12-31 Other Events, Exhibits
8-K 2018-11-07 Earnings, Exhibits
8-K 2018-08-08 Earnings, Exhibits
8-K 2018-06-25 Enter Agreement, Exhibits
8-K 2018-06-21 Regulation FD, Exhibits
8-K 2018-06-18 Shareholder Vote
8-K 2018-03-28 Enter Agreement, Off-BS Arrangement, Exhibits
8-K 2018-03-19 Regulation FD, Exhibits
8-K 2018-01-08 Earnings, Regulation FD, Exhibits
CRL Charles River 6,660
SFLY Shutterfly 1,530
COE China Online Education Group 127
PIR Pier 1 Imports 81
BHTG Biohitech Global 40
LIVE Live Ventures 14
SN Sanchez Energy 0
ACAN Americann 0
HGBL Heritage Global 0
WEB web.com 0
HRTX 2019-06-30
Part I. Financial Information
Item 1. Condensed Consolidated Financial Statements
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II. Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
EX-10.1 hrtx-ex101_26.htm
EX-31.1 hrtx-ex311_8.htm
EX-31.2 hrtx-ex312_6.htm
EX-32.1 hrtx-ex321_7.htm

Heron Therapeutics Earnings 2019-06-30

HRTX 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

hrtx-10q_20190630.htm
false 2019 Q2 HERON THERAPEUTICS, INC. /DE/ 0000818033 --12-31 Large Accelerated Filer false 61 61 P2Y P6Y10M13D P6Y11M26D P6Y P6Y P6M P6M 0000818033 2019-01-01 2019-06-30 xbrli:shares 0000818033 2019-07-17 iso4217:USD 0000818033 2019-06-30 0000818033 2018-12-31 0000818033 2019-04-01 2019-06-30 0000818033 2018-04-01 2018-06-30 0000818033 2018-01-01 2018-06-30 iso4217:USD xbrli:shares 0000818033 us-gaap:CommonStockMember 2018-12-31 0000818033 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0000818033 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-31 0000818033 us-gaap:RetainedEarningsMember 2018-12-31 0000818033 us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-03-31 0000818033 2019-01-01 2019-03-31 0000818033 us-gaap:CommonStockMember 2019-01-01 2019-03-31 0000818033 us-gaap:RetainedEarningsMember 2019-01-01 2019-03-31 0000818033 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-03-31 0000818033 us-gaap:CommonStockMember 2019-03-31 0000818033 us-gaap:AdditionalPaidInCapitalMember 2019-03-31 0000818033 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-03-31 0000818033 us-gaap:RetainedEarningsMember 2019-03-31 0000818033 2019-03-31 0000818033 us-gaap:AdditionalPaidInCapitalMember 2019-04-01 2019-06-30 0000818033 us-gaap:CommonStockMember 2019-04-01 2019-06-30 0000818033 us-gaap:RetainedEarningsMember 2019-04-01 2019-06-30 0000818033 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-04-01 2019-06-30 0000818033 us-gaap:CommonStockMember 2019-06-30 0000818033 us-gaap:AdditionalPaidInCapitalMember 2019-06-30 0000818033 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-06-30 0000818033 us-gaap:RetainedEarningsMember 2019-06-30 0000818033 us-gaap:CommonStockMember 2017-12-31 0000818033 us-gaap:AdditionalPaidInCapitalMember 2017-12-31 0000818033 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-12-31 0000818033 us-gaap:RetainedEarningsMember 2017-12-31 0000818033 2017-12-31 0000818033 us-gaap:AdditionalPaidInCapitalMember 2018-01-01 2018-03-31 0000818033 2018-01-01 2018-03-31 0000818033 us-gaap:CommonStockMember 2018-01-01 2018-03-31 0000818033 us-gaap:RetainedEarningsMember 2018-01-01 2018-03-31 0000818033 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-01-01 2018-03-31 0000818033 us-gaap:CommonStockMember 2018-03-31 0000818033 us-gaap:AdditionalPaidInCapitalMember 2018-03-31 0000818033 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-03-31 0000818033 us-gaap:RetainedEarningsMember 2018-03-31 0000818033 2018-03-31 0000818033 us-gaap:CommonStockMember 2018-04-01 2018-06-30 0000818033 us-gaap:AdditionalPaidInCapitalMember 2018-04-01 2018-06-30 0000818033 us-gaap:RetainedEarningsMember 2018-04-01 2018-06-30 0000818033 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-04-01 2018-06-30 0000818033 us-gaap:CommonStockMember 2018-06-30 0000818033 us-gaap:AdditionalPaidInCapitalMember 2018-06-30 0000818033 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-06-30 0000818033 us-gaap:RetainedEarningsMember 2018-06-30 0000818033 2018-06-30 0000818033 hrtx:NineteenNinetySevenEmployeeStockOptionMember 2019-01-01 2019-06-30 xbrli:pure 0000818033 us-gaap:CustomerConcentrationRiskMember us-gaap:SalesRevenueNetMember hrtx:LargestCustomerMember 2019-04-01 2019-06-30 0000818033 us-gaap:CustomerConcentrationRiskMember us-gaap:SalesRevenueNetMember hrtx:LargestCustomerMember 2019-01-01 2019-06-30 0000818033 us-gaap:CustomerConcentrationRiskMember us-gaap:SalesRevenueNetMember hrtx:SecondLargestCustomerMember 2019-04-01 2019-06-30 0000818033 us-gaap:CustomerConcentrationRiskMember us-gaap:SalesRevenueNetMember hrtx:SecondLargestCustomerMember 2019-01-01 2019-06-30 0000818033 us-gaap:CustomerConcentrationRiskMember us-gaap:SalesRevenueNetMember hrtx:ThirdLargestCustomerMember 2019-04-01 2019-06-30 0000818033 us-gaap:CustomerConcentrationRiskMember us-gaap:SalesRevenueNetMember hrtx:ThirdLargestCustomerMember 2019-01-01 2019-06-30 0000818033 us-gaap:CustomerConcentrationRiskMember us-gaap:SalesRevenueNetMember 2019-04-01 2019-06-30 0000818033 us-gaap:CustomerConcentrationRiskMember us-gaap:SalesRevenueNetMember 2019-01-01 2019-06-30 0000818033 us-gaap:AccountsReceivableMember hrtx:LargestCustomerMember us-gaap:CustomerConcentrationRiskMember 2019-01-01 2019-06-30 0000818033 us-gaap:AccountsReceivableMember hrtx:SecondLargestCustomerMember us-gaap:CustomerConcentrationRiskMember 2019-01-01 2019-06-30 0000818033 us-gaap:AccountsReceivableMember hrtx:ThirdLargestCustomerMember us-gaap:CustomerConcentrationRiskMember 2019-01-01 2019-06-30 0000818033 us-gaap:AccountsReceivableMember us-gaap:CustomerConcentrationRiskMember 2019-01-01 2019-06-30 0000818033 us-gaap:RetainedEarningsMember us-gaap:AccountingStandardsUpdate201409Member 2018-01-01 0000818033 us-gaap:AccountingStandardsUpdate201409Member 2018-01-01 2018-01-01 0000818033 us-gaap:AccountingStandardsUpdate201409Member hrtx:ProductSalesAllowanceMember 2018-01-01 0000818033 hrtx:AllowanceForSalesReturns1Member 2018-12-31 0000818033 hrtx:AllowanceForDistributorFeesMember 2018-12-31 0000818033 hrtx:AllowanceForRebatesAndChargebacksMember 2018-12-31 0000818033 hrtx:AllowanceForSalesReturns1Member 2019-01-01 2019-06-30 0000818033 hrtx:AllowanceForDistributorFeesMember 2019-01-01 2019-06-30 0000818033 hrtx:AllowanceForRebatesAndChargebacksMember 2019-01-01 2019-06-30 0000818033 hrtx:AllowanceForSalesReturns1Member 2019-06-30 0000818033 hrtx:AllowanceForDistributorFeesMember 2019-06-30 0000818033 hrtx:AllowanceForRebatesAndChargebacksMember 2019-06-30 0000818033 us-gaap:EmployeeStockOptionMember 2019-01-01 2019-06-30 0000818033 us-gaap:EmployeeStockOptionMember 2018-01-01 2018-06-30 0000818033 us-gaap:WarrantMember 2019-01-01 2019-06-30 0000818033 us-gaap:WarrantMember 2018-01-01 2018-06-30 0000818033 us-gaap:ConvertibleDebtSecuritiesMember 2019-01-01 2019-06-30 0000818033 us-gaap:ConvertibleDebtSecuritiesMember 2018-01-01 2018-06-30 0000818033 us-gaap:MoneyMarketFundsMember us-gaap:FairValueMeasurementsRecurringMember 2019-06-30 0000818033 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2019-06-30 0000818033 us-gaap:USTreasurySecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2019-06-30 0000818033 us-gaap:USTreasurySecuritiesMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2019-06-30 0000818033 us-gaap:DomesticCorporateDebtSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2019-06-30 0000818033 us-gaap:DomesticCorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-06-30 0000818033 us-gaap:ForeignCorporateDebtSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2019-06-30 0000818033 us-gaap:ForeignCorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-06-30 0000818033 hrtx:UnitedStatesCommercialPaperMember us-gaap:FairValueMeasurementsRecurringMember 2019-06-30 0000818033 hrtx:UnitedStatesCommercialPaperMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-06-30 0000818033 hrtx:ForeignCommercialPaperMember us-gaap:FairValueMeasurementsRecurringMember 2019-06-30 0000818033 hrtx:ForeignCommercialPaperMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-06-30 0000818033 us-gaap:FairValueMeasurementsRecurringMember 2019-06-30 0000818033 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2019-06-30 0000818033 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-06-30 0000818033 us-gaap:MoneyMarketFundsMember us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0000818033 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0000818033 us-gaap:USTreasurySecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0000818033 us-gaap:USTreasurySecuritiesMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0000818033 us-gaap:DomesticCorporateDebtSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0000818033 us-gaap:DomesticCorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0000818033 us-gaap:ForeignCorporateDebtSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0000818033 us-gaap:ForeignCorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0000818033 hrtx:UnitedStatesCommercialPaperMember us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0000818033 hrtx:UnitedStatesCommercialPaperMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0000818033 hrtx:ForeignCommercialPaperMember us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0000818033 hrtx:ForeignCommercialPaperMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0000818033 us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0000818033 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0000818033 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0000818033 us-gaap:USTreasurySecuritiesMember 2019-06-30 0000818033 us-gaap:DomesticCorporateDebtSecuritiesMember 2019-06-30 0000818033 us-gaap:ForeignCorporateDebtSecuritiesMember 2019-06-30 0000818033 hrtx:UnitedStatesCommercialPaperMember 2019-06-30 0000818033 hrtx:ForeignCommercialPaperMember 2019-06-30 0000818033 us-gaap:USTreasurySecuritiesMember 2018-12-31 0000818033 us-gaap:DomesticCorporateDebtSecuritiesMember 2018-12-31 0000818033 us-gaap:ForeignCorporateDebtSecuritiesMember 2018-12-31 0000818033 hrtx:UnitedStatesCommercialPaperMember 2018-12-31 0000818033 hrtx:ForeignCommercialPaperMember 2018-12-31 0000818033 hrtx:SUSTOLMember 2019-06-30 0000818033 hrtx:CINVANTIMember 2019-06-30 0000818033 hrtx:SUSTOLMember 2018-12-31 0000818033 hrtx:CINVANTIMember 2018-12-31 0000818033 stpr:CA 2019-01-01 2019-06-30 0000818033 stpr:NJ 2019-01-01 2019-06-30 0000818033 us-gaap:AccountingStandardsUpdate201602Member 2019-01-01 0000818033 us-gaap:ConvertibleNotesPayableMember 2011-04-30 0000818033 2011-04-01 2011-04-30 0000818033 us-gaap:ConvertibleNotesPayableMember 2011-04-01 2011-04-30 0000818033 us-gaap:ConvertibleNotesPayableMember us-gaap:CommonStockMember 2011-04-01 2011-04-30 hrtx:Day 0000818033 us-gaap:ConvertibleNotesPayableMember 2011-07-29 2011-07-29 0000818033 us-gaap:ConvertibleNotesPayableMember 2019-01-01 2019-06-30 0000818033 us-gaap:ConvertibleNotesPayableMember 2019-04-01 2019-06-30 0000818033 us-gaap:ConvertibleNotesPayableMember 2018-04-01 2018-06-30 0000818033 us-gaap:ConvertibleNotesPayableMember 2018-01-01 2018-06-30 0000818033 us-gaap:ConvertibleNotesPayableMember 2019-06-30 0000818033 hrtx:TermLoanMember hrtx:TangCapitalMember 2016-08-31 0000818033 hrtx:TermLoanMember hrtx:TangCapitalMember 2016-08-01 2016-08-31 0000818033 hrtx:TermLoanMember hrtx:TangCapitalMember 2016-08-05 2016-08-05 0000818033 hrtx:TermLoanMember hrtx:TangCapitalMember 2016-08-02 2016-08-02 0000818033 hrtx:TermLoanMember hrtx:TangCapitalMember 2016-08-02 0000818033 hrtx:TermLoanMember hrtx:TangCapitalMember 2018-04-01 2018-06-30 0000818033 hrtx:TermLoanMember hrtx:TangCapitalMember 2018-01-01 2018-06-30 0000818033 hrtx:TermLoanMember hrtx:TangCapitalMember 2018-08-01 2018-08-31 0000818033 hrtx:TermLoanMember hrtx:TangCapitalMember 2019-06-30 0000818033 us-gaap:CommonStockMember 2018-04-01 2018-04-30 0000818033 us-gaap:CommonStockMember 2018-04-30 0000818033 2018-04-01 2018-04-30 0000818033 us-gaap:CommonStockMember 2018-06-01 2018-06-30 0000818033 2018-06-01 2018-06-30 0000818033 2018-01-01 2018-12-31 0000818033 us-gaap:ResearchAndDevelopmentExpenseMember 2019-04-01 2019-06-30 0000818033 us-gaap:ResearchAndDevelopmentExpenseMember 2018-04-01 2018-06-30 0000818033 us-gaap:ResearchAndDevelopmentExpenseMember 2019-01-01 2019-06-30 0000818033 us-gaap:ResearchAndDevelopmentExpenseMember 2018-01-01 2018-06-30 0000818033 us-gaap:GeneralAndAdministrativeExpenseMember 2019-04-01 2019-06-30 0000818033 us-gaap:GeneralAndAdministrativeExpenseMember 2018-04-01 2018-06-30 0000818033 us-gaap:GeneralAndAdministrativeExpenseMember 2019-01-01 2019-06-30 0000818033 us-gaap:GeneralAndAdministrativeExpenseMember 2018-01-01 2018-06-30 0000818033 us-gaap:SellingAndMarketingExpenseMember 2019-04-01 2019-06-30 0000818033 us-gaap:SellingAndMarketingExpenseMember 2018-04-01 2018-06-30 0000818033 us-gaap:SellingAndMarketingExpenseMember 2019-01-01 2019-06-30 0000818033 us-gaap:SellingAndMarketingExpenseMember 2018-01-01 2018-06-30 0000818033 us-gaap:EmployeeStockOptionMember 2019-01-01 2019-06-30 0000818033 us-gaap:EmployeeStockOptionMember 2018-01-01 2018-06-30 0000818033 hrtx:NineteenNinetySevenEmployeeStockOptionMember 2018-01-01 2018-06-30

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q

 

 

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2019

OR

 

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______ to _______

 

Commission file number:  001-33221

 

HERON THERAPEUTICS, INC.

(Exact name of registrant as specified in its charter)

 

Delaware

(State or other jurisdiction of

incorporation or organization)

94-2875566

(I.R.S. Employer

Identification No.)

 

 

4242 Campus Point Court, Suite 200

San Diego, CA

92121

(Address of principal executive offices)

(Zip Code)

 

Registrant’s telephone number, including area code: (858) 251-4400

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading Symbol(s)

 

Name of each exchange on which registered

Common Stock, par value $0.01 per share

 

HRTX

 

The Nasdaq Capital Market

 

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes      No   

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).     Yes      No  

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

Accelerated filer

 

 

 

 

 

Non-accelerated filer

 

Smaller reporting company

 

 

 

 

 

 

 

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes      No  

 

The number of shares of the registrant’s common stock, par value $0.01 per share, outstanding as of July 17, 2019 was 79,816,417.

 

 

 


HERON THERAPEUTICS, INC.

FORM 10-Q

FOR THE QUARTERLY PERIOD ENDED June 30, 2019

TABLE OF CONTENTS

 

PART I.

 

FINANCIAL INFORMATION

 

 

 

 

 

 

 

ITEM 1.

 

Condensed Consolidated Financial Statements

 

 

 

 

 

 

 

 

 

Condensed Consolidated Balance Sheets as of June 30, 2019 (Unaudited) and December 31, 2018

 

2

 

 

 

 

 

 

 

Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three and Six Months Ended June 30, 2019 and 2018 (Unaudited)

 

3

 

 

 

 

 

 

 

Condensed Consolidated Statements of Stockholders’ Equity for the Six Months Ended June 30, 2019 and 2018 (Unaudited)

 

4

 

 

 

 

 

 

 

Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2019 and 2018 (Unaudited)

 

6

 

 

 

 

 

 

 

Notes to Condensed Consolidated Financial Statements (Unaudited)

 

7

 

 

 

 

 

ITEM 2.

 

Management's Discussion and Analysis of Financial Condition and Results of Operations

 

18

 

 

 

 

 

ITEM 3.

 

Quantitative and Qualitative Disclosures about Market Risk

 

28

 

 

 

 

 

ITEM 4.

 

Controls and Procedures

 

28

 

 

 

 

 

PART II.

 

OTHER INFORMATION

 

 

 

 

 

 

 

ITEM 1.

 

Legal Proceedings

 

29

 

 

 

 

 

ITEM 1A.

 

Risk Factors

 

29

 

 

 

 

 

ITEM 2.

 

Unregistered Sales of Equity Securities and Use of Proceeds

 

53

 

 

 

 

 

ITEM 3.

 

Defaults upon Senior Securities

 

53

 

 

 

 

 

ITEM 4.

 

Mine Safety Disclosures

 

53

 

 

 

 

 

ITEM 5.

 

Other Information

 

53

 

 

 

 

 

ITEM 6.

 

Exhibits

 

54

 

 

 

 

 

 

 

SIGNATURES

 

55

 

1


PART I.

FINANCIAL INFORMATION

ITEM 1.

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

HERON THERAPEUTICS, INC.

Condensed Consolidated Balance Sheets

(in thousands)

 

 

 

June 30,

2019

 

 

December 31,

2018

 

 

 

(unaudited)

 

 

(see Note 2)

 

ASSETS

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

53,038

 

 

$

31,836

 

Short-term investments

 

 

222,967

 

 

 

300,535

 

Accounts receivable, net

 

 

66,821

 

 

 

64,652

 

Inventory

 

 

29,270

 

 

 

39,032

 

Prepaid expenses and other current assets

 

 

8,739

 

 

 

11,193

 

Total current assets

 

 

380,835

 

 

 

447,248

 

Property and equipment, net

 

 

17,910

 

 

 

14,677

 

Right-of-use lease assets

 

 

12,667

 

 

 

 

Other assets

 

 

254

 

 

 

254

 

Total assets

 

$

411,666

 

 

$

462,179

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

7,997

 

 

$

16,863

 

Accrued clinical and manufacturing liabilities

 

 

25,383

 

 

 

24,470

 

Accrued payroll and employee liabilities

 

 

8,982

 

 

 

13,397

 

Other accrued liabilities

 

 

45,891

 

 

 

32,715

 

Current lease liabilities

 

 

1,722

 

 

 

 

Convertible notes payable to related parties, net of discount

 

 

5,081

 

 

 

4,574

 

Total current liabilities

 

 

95,056

 

 

 

92,019

 

Non-current lease liabilities

 

 

11,251

 

 

 

 

Total liabilities

 

 

106,307

 

 

 

92,019

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

Common stock

 

 

798

 

 

 

782

 

Additional paid-in capital

 

 

1,378,368

 

 

 

1,330,186

 

Accumulated other comprehensive income (loss)

 

 

148

 

 

 

(87

)

Accumulated deficit

 

 

(1,073,955

)

 

 

(960,721

)

Total stockholders’ equity

 

 

305,359

 

 

 

370,160

 

Total liabilities and stockholders’ equity

 

$

411,666

 

 

$

462,179

 

 

See accompanying notes.

2


HERON THERAPEUTICS, INC.

Condensed Consolidated Statements of Operations and Comprehensive Loss

(unaudited)

(in thousands, except per share amounts)

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net product sales

 

$

36,659

 

 

$

17,277

 

 

$

68,261

 

 

$

28,844

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of product sales

 

 

13,588

 

 

 

5,231

 

 

 

28,550

 

 

 

8,364

 

Research and development

 

 

41,425

 

 

 

30,159

 

 

 

84,397

 

 

 

69,720

 

General and administrative

 

 

9,778

 

 

 

6,209

 

 

 

19,426

 

 

 

13,237

 

Sales and marketing

 

 

23,647

 

 

 

14,531

 

 

 

52,367

 

 

 

28,366

 

Total operating expenses

 

 

88,438

 

 

 

56,130

 

 

 

184,740

 

 

 

119,687

 

Loss from operations

 

 

(51,779

)

 

 

(38,853

)

 

 

(116,479

)

 

 

(90,843

)

Other income (expense), net

 

 

1,557

 

 

 

183

 

 

 

3,245

 

 

 

(92

)

Net loss

 

 

(50,222

)

 

 

(38,670

)

 

 

(113,234

)

 

 

(90,935

)

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gains (losses) on short-term investments

 

 

112

 

 

 

17

 

 

 

235

 

 

 

(15

)

Comprehensive loss

 

$

(50,110

)

 

$

(38,653

)

 

$

(112,999

)

 

$

(90,950

)

Basic and diluted net loss per share

 

$

(0.63

)

 

$

(0.54

)

 

$

(1.43

)

 

$

(1.33

)

Shares used in computing basic and diluted net loss per share

 

 

79,548

 

 

 

71,952

 

 

 

78,987

 

 

 

68,358

 

 

See accompanying notes.

3


HERON THERAPEUTICS, INC.

Condensed Consolidated Statements of Stockholders’ Equity

(unaudited)

(in thousands)

 

 

 

Common Stock

 

 

Additional

 

 

Accumulated

Other

 

 

 

 

 

 

Total

 

 

 

Shares

 

 

Amount

 

 

Paid-In

Capital

 

 

Comprehensive

(Loss) Income

 

 

Accumulated

Deficit

 

 

Stockholders’

Equity

 

Balance as of December 31, 2018

 

 

78,174

 

 

$

782

 

 

$

1,330,186

 

 

$

(87

)

 

$

(960,721

)

 

$

370,160

 

Conversion benefit included in Convertible Notes

   issued

 

 

 

 

 

 

 

 

102

 

 

 

 

 

 

 

 

 

102

 

Issuance of common stock on exercise of stock

   options

 

 

732

 

 

 

7

 

 

 

6,532

 

 

 

 

 

 

 

 

 

6,539

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

17,902

 

 

 

 

 

 

 

 

 

17,902

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(63,012

)

 

 

(63,012

)

Net unrealized gain on short-term investments

 

 

 

 

 

 

 

 

 

 

 

123

 

 

 

 

 

 

123

 

Comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(62,889

)

Balance as of March 31, 2019

 

 

78,906

 

 

 

789

 

 

 

1,354,722

 

 

 

36

 

 

 

(1,023,733

)

 

 

331,814

 

Conversion benefit included in Convertible Notes

   issued

 

 

 

 

 

 

 

 

103

 

 

 

 

 

 

 

 

 

103

 

Issuance of common stock on exercise of stock

   options

 

 

810

 

 

 

8

 

 

 

9,668

 

 

 

 

 

 

 

 

 

9,676

 

Issuance of common stock on under the employee

   stock purchase plan

 

 

63

 

 

 

1

 

 

 

1,169

 

 

 

 

 

 

 

 

 

1,170

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

12,706

 

 

 

 

 

 

 

 

 

12,706

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(50,222

)

 

 

(50,222

)

Net unrealized gain on short-term investments

 

 

 

 

 

 

 

 

 

 

 

112

 

 

 

 

 

 

112

 

Comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(50,110

)

Balance as of June 30, 2019

 

 

79,779

 

 

$

798

 

 

$

1,378,368

 

 

$

148

 

 

$

(1,073,955

)

 

$

305,359

 

 

 

See accompanying notes.

4


 

 

 

Common Stock

 

 

Additional

 

 

Accumulated

Other

 

 

 

 

 

 

Total

 

 

 

Shares

 

 

Amount

 

 

Paid-In

Capital

 

 

Comprehensive

Loss

 

 

Accumulated

Deficit

 

 

Stockholders’

Equity

 

Balance as of December 31, 2017

 

 

64,609

 

 

$

646

 

 

$

913,955

 

 

$

(10

)

 

$

(783,455

)

 

$

131,136

 

Cumulative effect of adoption of new accounting

   standard

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,573

 

 

 

1,573

 

Issuance of common stock in public offerings, net

 

 

 

 

 

 

 

 

(205

)

 

 

 

 

 

 

 

 

(205

)

Conversion benefit included in Convertible Notes

   issued

 

 

 

 

 

 

 

 

96

 

 

 

 

 

 

 

 

 

96

 

Issuance of common stock on exercise of stock

   options

 

 

435

 

 

 

4

 

 

 

4,198

 

 

 

 

 

 

 

 

 

4,202

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

7,701

 

 

 

 

 

 

 

 

 

7,701

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(52,265

)

 

 

(52,265

)

Net unrealized loss on short-term investments

 

 

 

 

 

 

 

 

 

 

 

(32

)

 

 

 

 

 

(32

)

Comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(52,297

)

Balance as of March 31, 2018

 

 

65,044

 

 

 

650

 

 

 

925,745

 

 

 

(42

)

 

 

(834,147

)

 

 

92,206

 

Cumulative effect of adoption of new accounting

   standard

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

 

 

1

 

Issuance of common stock in public offerings, net

 

 

11,963

 

 

 

120

 

 

 

363,212

 

 

 

 

 

 

 

 

 

363,332

 

Conversion benefit included in Convertible Notes

   issued

 

 

 

 

 

 

 

 

97

 

 

 

 

 

 

 

 

 

97

 

Issuance of common stock on exercise of stock

   options

 

 

504

 

 

 

5

 

 

 

6,434

 

 

 

 

 

 

 

 

 

6,439

 

Issuance of common stock under the Employee Stock

   Purchase Plan

 

 

49

 

 

 

 

 

 

648

 

 

 

 

 

 

 

 

 

648

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

7,821

 

 

 

 

 

 

 

 

 

7,821

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(38,670

)

 

 

(38,670

)

Net unrealized gain on short-term investments

 

 

 

 

 

 

 

 

 

 

 

17

 

 

 

 

 

 

17

 

Comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(38,653

)

Balance as of June 30, 2018

 

 

77,560

 

 

$

775

 

 

$

1,303,957

 

 

$

(25

)

 

$

(872,816

)

 

$

431,891

 

 

 

See accompanying notes.

5


HERON THERAPEUTICS, INC.

Condensed Consolidated Statements of Cash Flows

(unaudited)

(in thousands)

 

 

 

Six Months Ended

June 30,

 

 

 

2019

 

 

2018

 

Operating activities:

 

 

 

 

 

 

 

 

Net loss

 

$

(113,234

)

 

$

(90,935

)

Adjustments to reconcile net loss to net cash used for operating activities:

 

 

 

 

 

 

 

 

Stock-based compensation expense

 

 

30,608

 

 

 

15,522

 

Depreciation and amortization

 

 

959

 

 

 

711

 

Amortization of debt discount

 

 

507

 

 

 

428

 

Realized gain on short-term investments

 

 

(8

)

 

 

 

Accretion of discount on short-term investments

 

 

(2,437

)

 

 

(864

)

Impairment on property and equipment

 

 

54

 

 

 

 

Loss on disposal of property and equipment

 

 

53

 

 

 

3

 

Change in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(2,169

)

 

 

(4,012

)

Prepaid expenses and other assets

 

 

2,454

 

 

 

(3,039

)

Inventory

 

 

9,762

 

 

 

(17,287

)

Accounts payable

 

 

(8,866

)

 

 

(13,790

)

Accrued clinical and manufacturing liabilities

 

 

913

 

 

 

(8,934

)

Accrued payroll and employee liabilities

 

 

(4,415

)

 

 

(1,974

)

Other accrued liabilities

 

 

13,687

 

 

 

1,729

 

Net cash used for operating activities

 

 

(72,132

)

 

 

(122,442

)

Investing activities:

 

 

 

 

 

 

 

 

Purchases of short-term investments

 

 

(204,358

)

 

 

(157,885

)

Maturities and sales of short-term investments

 

 

284,606

 

 

 

22,500

 

Purchases of property and equipment

 

 

(4,299

)

 

 

(2,238

)

Net cash provided by (used for) investing activities

 

 

75,949

 

 

 

(137,623

)

Financing activities:

 

 

 

 

 

 

 

 

Net proceeds from sale of common stock

 

 

 

 

 

363,127

 

Proceeds from stock option exercises

 

 

16,215

 

 

 

10,641

 

Proceeds from purchases under the Employee Stock Purchase Plan

 

 

1,170

 

 

 

648

 

Net cash provided by financing activities

 

 

17,385

 

 

 

374,416

 

Net increase in cash and cash equivalents

 

 

21,202

 

 

 

114,351

 

Cash and cash equivalents at beginning of year

 

 

31,836

 

 

 

144,583

 

Cash and cash equivalents at end of period

 

$

53,038

 

 

$

258,934

 

Supplemental disclosure of cash flow information: